Jim Cramer Explains How SpaceX is Changing the Economics of the xAI Business

Space Exploration Technologies Corp. (NASDAQ:SPCX) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer mentioned the company during the episode and said:

SpaceX is now in the same business as well, and it’s allowing them to totally change the economics of their XAI business. Normal neocloud contracts average somewhere between 12 to 15 billion per gigawatt. But when you look at the SpaceX deals with Anthropic and Google… three or four times that. Jeez, that’s a lot of money. Of course, most of the neoclouds can’t play that game. They need long-term offtake agreements to finance their building. But SpaceX, Meta, and Oracle have deep enough pockets to make this happen.

Space Exploration Technologies Corp. (NASDAQ:SPCX) manufactures and launches reusable spacecraft for orbital payloads and government missions, and provides satellite-based broadband internet. Additionally, it operates an artificial intelligence platform comprising computational infrastructure, user applications, and the X information network.

While we acknowledge the risk and potential of SPCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPCX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1